Ringmetall keeps Group revenue stable despite declining steel prices while maintaining high margins

Ringmetall keeps Group revenue stable despite declining steel prices while maintaining high margins

• Group revenue declines by 1.0 percent to EUR 134.1 million on a comparable basis due to raw material prices
• EBITDA improves by 3.6 percent to EUR 18.8 million on a comparable basis
• EBITDA margin remains high at 14.1 percent

Munich, 7 November 2024 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialist supplier in the packaging industry, performed well overall in the third quarter of 2024 in an increasingly recessionary economic environment. However, slight organic growth at Group level and revenue growth through acquisitions continued to be offset by falling raw material prices. Steel prices in particular continued their significant downward trend from the previous quarters.

At EUR 134.1 million, Group revenue was 1.0 percent below the adjusted prior-year figure (9M 2023, adjusted for HSM's contribution to revenue: EUR 135.4 million*). As in the previous quarters, declining commodity prices, and in particular falling steel prices, had a negative impact on revenue. In the sales regions, the US market proved to be consistently robust in the past quarter and developed better than the other sales markets. Although demand in Europe remained stable overall, sales development here was supported in particular by demand for large container liners. The UK market should also be highlighted as a positive development, which has now shown a noticeable recovery after a subdued performance in the previous quarters.

“Even though we are still coping well with the current environment overall, it is clear that the recessionary trends are affecting more and more markets,” explains Christoph Petri, CEO of Ringmetall SE. “It is becoming increasingly apparent that the slight recovery phase that we were able to observe in many industries just a few quarters ago is already coming to an end.”

At EUR 18.8 million, earnings before interest, taxes, depreciation and amortization (EBITDA) were 3.6 percent above the adjusted previous year's level (H1 2023, adjusted for the special effect from the sale of HSM: EUR 18.1 million**). At 14.1 percent, the EBITDA margin in relation to total operating performance declined slightly compared to the first half of the year, but remained at a high level overall (9M 2023, adjusted for the special effect from the sale of HSM: 12.7 percent). The slight reduction in revenue due to raw material prices continues to be reflected positively in the earnings margins.

The key figures for business development in the reporting period are as follows:

*The tabular presentation of revenue in 9M 2023 includes EUR 8.3 million in revenue from the former subsidiary HSM, which was sold as per 30 June 2023.

**The tabular presentation of EBITDA in 9M 2023 includes one-off deconsolidation effects of EUR -4.6 million from the sale of the former subsidiary HSM as per 30 June 2023.

In the individual product groups, demand for clamping rings tended to stagnate. Sales of bag-in-box systems remained below expectations due to the need for further adjustments to the newly constructed production lines. However, the Management Board expects to be able to overcome these delays, which are not unusual during the ramp-up of new production facilities, in the course of the first half of 2025. Demand for technical inliners for the chemical industry is becoming increasingly marked by a deepening recession. Both orders intake and order backlog are now showing a clear decline. In contrast, the market for large container and liquid liners for the food and beverage industry developed above expectations. Sales are benefiting from an overall positive market environment, although a decline in order intake can be observed here for the first time again.

In light of the current business development and the generally stable market environment, the Management Board upholds its guidance for revenue and earnings development for the full year 2024, as specified on 12 August 2024. Accordingly, the Managment Board now expects Group revenue in the range of EUR 170 to 185 million (previous guidance: EUR 170 to 195 million) and EBITDA in the range of EUR 22 to 27 million (previous guidance: EUR 20 to 27 million). The guidance is based on unchanged raw material prices and exchange rates compared to 30 September 2024. It does not include the effects of acquisitions planned for later in the year, including the resulting transaction costs.

Further information on the Ringmetall Group can be found at www.ringmetall.de.

Contact:

Ingo Middelmenne
Investor Relations
Ringmetall SE
Phone: +49 (0)89 45 220 98 12 
Mobile:  +49 (0)174 90 911 90
Email: middelmenne@ringmetall.de

About Ringmetall Group

Ringmetall is a leading international specialist supplier of industrial packaging. The company produces high-security closure systems and inner liners for industrial drums for the chemical, pharmaceutical and food processing industries. Ringmetall also offers innovative packaging solutions for the beverage industry. With products that are highly recyclable, the company contributes to strengthening the circular economy and the sustainability of its end customers. In addition to its headquarters in Munich, the Group is represented by global production and sales offices in Germany, France, the UK, Spain, Italy, Turkey, the Netherlands, China and the USA. In 2023, Ringmetall generated consolidated revenues of EUR 181.6 million with 867 employees.